Dell Technologies Inc. Quarterly Report for Q3 Ended Oct 28, 2022

Summary

Dell Technologies Inc. reported its third-quarter fiscal year 2023 results, showing a year-over-year decrease in total net revenue by 6% to $24.7 billion, largely driven by a decline in the Client Solutions Group (CSG) segment. Despite the revenue dip, the Infrastructure Solutions Group (ISG) segment demonstrated growth, with net revenue increasing by 12% to $9.6 billion. Profitability saw a significant improvement, with operating income increasing by 68% to $1.8 billion, primarily due to strong performance in ISG and a reduction in operating expenses. Non-GAAP operating income also rose by 22% to $2.4 billion. The company ended the quarter with a solid cash position and significant available borrowing capacity, indicating financial resilience amidst current macroeconomic uncertainties.

Key Highlights

• 1Total net revenue declined 6% year-over-year to $24.7 billion.
• 2Infrastructure Solutions Group (ISG) revenue grew 12% to $9.6 billion, driven by strong performance in servers, networking, and storage.
• 3Client Solutions Group (CSG) revenue decreased 17% due to declining demand, particularly in consumer offerings.
• 4Operating income surged 68% to $1.8 billion, reflecting improved ISG profitability and cost management.
• 5Non-GAAP operating income increased by 22% to $2.4 billion.
• 6The company ended the quarter with $4.9 billion in cash and cash equivalents and $5.0 billion in remaining available borrowings under its revolving credit facility.
• 7The company continues its share repurchase program, repurchasing $2.7 billion in Class C Common Stock during the first nine months of the fiscal year.

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